Bill Text: NJ S3649 | 2018-2019 | Regular Session | Introduced
Bill Title: Adjusts statute of limitations on damage claim for construction defect in common interest community.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2019-05-13 - Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee [S3649 Detail]
Download: New_Jersey-2018-S3649-Introduced.html
Sponsored by:
Senator LORETTA WEINBERG
District 37 (Bergen)
SYNOPSIS
Adjusts statute of limitations on damage claim for construction defect in common interest community.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning construction defects in common interest communities and amending N.J.S.2A:14-1.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. N.J.S.2A:14-1 is amended to read as follows:
2A:14-1. a. Every action at law for trespass to real property, for any tortious injury to real or personal property, for taking, detaining, or converting personal property, for replevin of goods or chattels, for any tortious injury to the rights of another not stated in [sections 2A:14-2 and 2A:14-3 of this Title] N.J.S.2A:14-2 and N.J.S.2A:14-3, or for recovery upon a contractual claim or liability, express or implied, not under seal, or upon an account other than one which concerns the trade or merchandise between merchant and merchant, their factors, agents and servants, shall be commenced within 6 years next after the cause of any such action shall have accrued.
b. This section shall not apply to any action for breach of any contract for sale governed by [section 12A:2-725 of the New Jersey Statutes] N.J.S.12A:2-725.
c. The period of time for the filing of a claim by a condominium association, cooperative corporation or other planned real estate development association against a developer or any person acting through, on behalf of or at the behest of the developer under subsection a. of this section, shall be tolled until the date of the transition from developer control, as established pursuant to paragraph (3) of subsection a. of section 5 of P.L.1993, c.30 (C.45:22A-47), or subsection d. of section 2 of P.L.1979, c.157 (C.46:8B-12.1). Any cause of action involving a condominium, cooperative or other planned real estate development under the provisions of subsection a. of this section that has not been subject to a final judgment dismissing the claim as of the effective date of P.L. , c. (pending before the Legislature as this bill) shall be subject to the terms of this subsection.
(cf: P.L.1961, c.121, s.1)
2. This act shall take effect immediately.
STATEMENT
This bill would adjust the statute of limitations on damage claims for construction defects in common interest communities. Specifically, in a claim for damages resulting from a construction defect in a condominium, cooperative, or other planned real estate development, the bill would require the statute of limitations to begin running at the time of the transition from developer control, instead of substantial completion of the project.
The statute of limitations for filing a claim for damages resulting from a construction defect currently runs for six years from the date of a project's substantial completion, so long as the defect does not result in an unsafe condition. A developer retains the ability to control the majority of a common interest community's executive board until the transition, which occurs sixty days after the conveyance of 75 percent of the units in the community. This transition from developer control can occur years after the project's substantial completion, leaving little or no time within the six-year window for the owner-controlled board to decide to file a claim against a developer, even when legitimate defects exist. This bill intends to allow the owner-controlled board more time to file a construction defect claim by requiring the statute of limitations to begin running upon transition of developer control.
